basic characteristics of preferred shares

Attachments

Solution Preview

1. List at least three basic characteristics of preferred shares that differentiate them from common shares.

Preferred stock carries no voting rights, but takes precedence over other shares in the liquidation of assets or dividend payments. It provides the owner with a fixed return, but does not increase in value as would common stock.

2. What might a poor inventory turnover ratio signify (other than it is not generally desirable)? Hint: think about the components of this ratio and some of the problems you might see in the values reported in the financial statements.

The inventory turnover ratio is calculated by dividing the cost of goods sold by average inventory (beginning inventory + ending inventory)/2. A lower ratio results when inventory ...

Solution Summary

Canadian savings bonds, perferred vs common stock, and the causes of poor inventory turnover

$2.19

Purchase Solution

$2.19

Solution provided by:

Education

BS, University of California, Riverside

MS, Emporia State University

Recent Feedback

"I appreciate that the expert took the time to provide explanations for answers. I use this service to augment my work not as a substitute. Being able to use the solutions as a check on my own work is how I use the service. In in a program with one class outside my comfort zone, so using the explanations serves as a validation of my methods which is far more important than just the solutions themselves."

"Thank you! I already did it thus I am glad to see I was right!"

"Thank you very much for the break down, showing how each formula is calculated."